Abstract:
The paper estimates the value of improvement of wetland quality using choice experiment approach of
stated preference valuation techniques. The study is based on household level data collected in 2011
from 120 randomly drawn respondents living around two wetlands within a radius of five kilometers in
southwestern Ethiopia. Results show that the local communities are highly concerned about the
environmental problems of the wetlands and they are willing to pay for the improvement of selected
attributes of the wetlands. The most preferred attribute is found to be fish stock. Marginal willingness to
pay for fish stock is about 5.04 ETB while this value is about 2.05 ETB for water purification attributes of
the wetland. The compensating surplus, which reflect the overall willingness to pay of respondents for
changes from the status quo to alternative improved scenarios, show that respondents are willing to
pay 39.6 ETB for the improved wetland management interventions. The paper concludes by highlighting
strategies that may help in halting the ongoing degradation of the wetlands in the study area
